• International Journal of Advanced Culture Technology
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• v.9 no.3
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• pp.92-99
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• 2021

In this research, it was investigated the competence of Korean salesmen in the insurance business(B2C, consumer goods marketing) and information communication industry(B2B, industrial goods marketing) at the individual level rather than the organizational level. The salesperson's Guanxi ability means the salesperson's ability to create, maintain, develop the Guanxi ability. Namely, it was investigated whether the Korean salesman's Guanxi ability is the effective and persuasive concept in explaining the sales performance(company performance, business performance). The purpose of this paper was to verify which variables, among Guanxi ability and customer orientation, better explain the sales performance of salespeople. The Western concept of marketing that is closest to Guanxi is the concept of the customer-orientation that is based on the theory of relationship exchange. Confucian culture in the East is the construct concept, Guanxi is the measurement. The relational exchange theory in the West is the construct concept, customer orientation is the measurement. As the result of the analysis, we found that the Guanxi proved a greater correlation with sales performance than customer orientation. In the information technology industry, there was a big difference compared to insurance industry, whereas Guanxi and customer orientation had a similar level of correlation with sales performance. In the case of the insurance industry, we found that the Guanxi and sales performance were significant but the customer orientation and sales performance were not. This means that sales performance can be accurately and sufficiently explained only by adding the Guanxi ability in addition to customer orientation. The result of analyzing the mediating effect of the Guanxi ability between customer orientation and company performance, customer orientation was significant with Guanxi, and customer orientation and company performance were also significant. But, when the Guanxi was used as the parameter, the Guanxi was significant with company performance, but the customer orientation was not. Even when the dependent variable was business performance, when the Guanxi was used as the parameter, we found that the Guanxi was significant with the business performance, but the customer orientation was not. Namely, it proved Guanxi ability and customer orientation are completely independent concepts. In addition, we found that the information technology industry, unlike the insurance industry, mediated the Guanxi ability between customer orientation and sales performance. We confirmed that in the future, salespeople should not only rely on rational methods to maintain and reinforce customer relationships, but must consider the emotional factors through empathy with customers.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.68
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• pp.197-218
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• 2015

China is a land of guanxi, everything is connected with guanxi. China has a business culture based on guanxi connections underpinned by strong Confucian ethics. However, there are some reasons why it is difficult for western companies to run businesses in China. Firstly, foreign firms lack the understanding and experiences necessary for doing business in China. They don't know the absence of alternatives is one of reasons that guanxi is so powerful in Chinese society. Secondly, there are many misconceptions about guanxi. It is easier for many foreign scholars or businessmen to equate guanxi with corruption due to the ambiguity of guanxi. Thus, if a foreign enterprise possesses guanxi, it can be a source of competitive advantage for doing business due to lack of law systems for anti-corruption activities in China. Furthermore, it is gaining increasing importance not only in Business to Government(B2G) but also in Business to Consumers(B2C) relationships. Therefore,managers should pay great attention to the proper use of guanxi instead of being involved in corrupt behaviours because now the governments hold a strong attitude against corruption. In particular, establishment of working guanxi through red envelops(basically giving money) or illegal gifts can cause a great problem for both parties, which were naturally accepted among most government officials and businessmen until recently.

• Journal of the Korean Society of Clothing and Textiles
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• v.33 no.2
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• pp.244-255
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• 2009

The purpose of this study was 1) to inquire into characteristics of apparel manufacturers and distributors in China, 2) to classify private Guanxi and organizational relationship type, 3) to find differences in private Guanxi to enterprise type and the class of participations' position, and 4) to also find effects of private Guanxi on organizational relationship. Apparel manufacturers and distributors in China participated in the study. Random sampling method was used to collect the data. Data from 173 questionnaires were used for the statistical analysis. Descriptive analysis, factor analysis, Cronbach's alpha coefficient, t-test, and regression analysis were conducted. Two factors of private Guanxi were classified(i.e., affective Guanxi, instrumental Guanxi). Three factors of organizational relationship type were identified(i.e., opportunistic relationship, cooperative relationship, vertical relationship). The results indicated that distributors regarded affective Guanxi as important more than manufactures and employees regarded affective Guanxi and instrumental Guanxi as important more than presidents. Distributors regarded cooperative relationship as important more than manufactures. Employees regarded organizational relationship as important more than presidents. Affective Guanxi positively affected on cooperative relationship and vertical relationship but negatively affected on opportunistic relationship. Instrumental Guanxi positively affected on opportunistic relationship and vertical relationship. The result of this study may give valuable information to retail merchandisers and strategists who participated in fashion business in China.

• Journal of the Korean Society of Clothing and Textiles
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• v.32 no.11
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• pp.1760-1770
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• 2008

The purpose of this study was 1) to find effects of private Guanxi and organizational relationship on quality of organizational relationship, 2) to find effects of private Guanxi and organizational relationship on performance of distribution channel, and 3) to also find effects of quality of organizational relationship on performance of distribution channel. Apparel manufacturers and distributors in China participated in the study. Random sampling method was used to collect the data. Data from 173 questionnaires were used for the statistical analysis. Factor analysis, Cronbach's alpha coefficient, and regression analysis was conducted. Two factors of private Guanxi were classified(i.e., affective Guanxi, instrumental Guanxi). Three factors of organizational relationship type were identified(i.e., opportunistic relationship, cooperative relationship, vertical relationship). The result indicated that affective Guanxi in terms of private Guanxi positively affected on quality of organizational relationship. Cooperative relationship and vertical relationship in terms of organizational relationship positively affected on quality of organizational relationship. Affective Guanxi positively affected on non-financial performance and financial performance in terms of performance of distribution channel. Instrumental Guanxi in terms of private Guanxi positively affected on financial performance only. Cooperative relationship in terms of organizational relationship positively affected on non-financial performance and vertical relationship positively affected on financial performance. Quality of organizational relationship positively affected on non-financial performance and vertical relationship positively affected on financial performance.

• Journal of the Korean Society of Clothing and Textiles
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• v.30 no.4 s.152
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• pp.519-530
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• 2006

The purpose of this study was to investigate whether management strategic types and entry strategy moderate the influence of Guanxi on the relationship performance between Korean apparel firms & Chinese partners. For these purposes, three hypotheses were developed and data was collected from 85 Korean apparel firms which have a business relationship with Chinese partners. Data was analyzed with SPSS methods such as frequency, factor analysis, multiple-regression, and hierarchical-regression analysis. The results were as follows: First, 'Prior to Guanxi' and 'Execution of Guanxi', which were sub-factors of Guanxi, influence positively on the relationship performance. And also the influence of 'Prior to Guanxi' was higher than 'Execution of Guanxi' on the relationship performance. Second, the influence of the 'Prior to Guanxi' on the relationship performance was stronger when Defender strategic type was used rather than other types. Third, the influence of the 'Prior to Guanxi' on the relationship performance was stronger when the entry scope of 'Both production & distribution in China' and the entry mode of 'Entry through Agent' were chosen.

• Asia-Pacific Journal of Business
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• v.11 no.4
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• pp.149-165
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• 2020

Purpose - This study investigates how employee personality traits affect psychological contract breach. Also, our study examines how Guanxi, a unique socio-cultural characteristic of China, moderates the relationship between personality traits and psychological contract breach. Design/methodology/approach - To test our ideas, we constructed a survey questionnaire based on the literatures on personality traits, Guanxi, and psychological breach. The questionnaires were distributed to Chinese employees, and then we conducted a regression analysis using 378 questionnaires. Findings - We found that neuroticism is positively related to perceived psychological contract breach. We also identified support for the prediction that the positive link between neuroticism and psychological contract breach becomes weaker when employees' awareness of Guanxi is high. Research implications or Originality - This study provides several theoretical and practical implications. First, this study elaborates the personality traits-psychological contract breach relationship by incorporating Guanxi, a critical contingency factor of China. Second, given that the relationship between neuroticism and psychological contract breach can be affected by employees' perceptions of Guanxi, managers should administer Guanxi to function as a lubricant within the organization.

• Journal of Information Technology Applications and Management
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• v.28 no.6
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• pp.117-132
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• 2021

Based on the core value of the Q&A community, the contribution of knowledge and information has a great impact on users' community evaluation. As a small social group, the relationships and interactions among community members are quickly formed through information technology. As such, the cognitive evaluation of the relationship between community members will have an impact on the intention of information contribution. This research builds on the previous research based on the social exchange theory and establishes a dual model of swift guanxi in examining the relationship between guanxi and continuous knowledge contribution. In the current study, 305 survey questionnaires were used and 249 valid questionnaires were used for analysis. The analysis results are as follows: First, information support has a positive impact on dedication-based swift guanxi. While hypothesis between information support and constraint-based swift guanxi was not be supported. Second, emotional support has a positive impact on the formation of swift guanxi from a dual perspective. Third, the swift guanxi from the dual perspective has a positive impact on the intention of continuous knowledge contribution. Finally, although personal involvement has an adjustment effect, it is a downward adjustment effect, hypotheses are not supported. The current study offers theoretical and practical implications in field of knowledge management, specifically knowledge contribution in the virtual community.

• Journal of the Economic Geographical Society of Korea
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• v.14 no.4
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• pp.657-670
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• 2011

China has gone through rapid economic growth due to transitional economies since 1978. In particular, Chinese transitional economies has led to fundamental changes in firms' activities under the socialist system. Nevertheless, Chinese firms have formed new industrial production organizations and spatial orders by sustaining personal networks based on existing traditional firm practice, which is called 'guanxi'. Therefore, the main purpose of this research is to identify the influence of personal networks, guanxi, on the business activities of Chinese firms by investigating the formation of guanxi mechanism. The main characteristics of guanxi represented in inter-firm relations are as follows. First, guanxi has played a role in facilitating inter-firm relations and business activities, because it has an inter-debt relations based on inter-reciprocal relations between firms. Second, Chinese firms has depended on posteriori guanxi rather than inherent guanxi by the internalization of personal networks through 'guanxi communicators'.Third, guanxi between firms and local government in extra-firm relations has been established to minimize risks from unstable legal regulations.

• Journal of Contemporary Eastern Asia
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• v.12 no.2
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• pp.89-97
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• 2013

This paper explores the influences of the traditional Chinese culture on social relations in China. It provides an introduction to the concept of Guanxi, the notion that social connections are based on socially situated reciprocity. This is different from social interaction in Western society that is based on self-interest and equity. Guanxi represents the foundation of social networks in many Eastern countries. As such, the study of social networks in China requires scholars to examine Guanxi networks. The paper demonstrates how a Guanxi perspective might be added to the examination of various theories that comprise structural (network) theory, including social capital theory, social exchange theory, cognitive and contagion theories, and the role of homophily for the study of Chinese society and its social organizations.

• Journal of the Economic Geographical Society of Korea
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• v.15 no.2
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• pp.228-239
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• 2012

Guanxi could be regarded as communities based on blood, regionalism, school ties centering on individual person. It has been used as a means of personal interests security and acquisition. What is more, it has formed a mode of socio-economic order, which is an inter-obligation relations based on mutual benefits. In practice, it is necessary to understand and accept guanxi in China, as it is a key factor to understand consumer patterns, inter-firm relations and extra-firm relations between firm and government. In this context, the main aim of the reserach is to identify the impact of guanxi on the business activities of Korean foreign direct investment firms in China by investigating their networks based on guanxi.